Chinese investors are becoming increasingly cautious when it comes to funding AI startups in the country. Two notable figures have expressed concerns about the current landscape, suggesting a shift towards practical applications and commercialization is needed.
Allen Zhu Xiaohu, known for his early investment in Didi Chuxing, recently criticized the abundance of large language models (LLMs) in China. He emphasized the lack of successful applications for these models, questioning the viability of investing in such startups.
Zhu’s sentiment was echoed by Robin Li Yanhong, the CEO of Baidu, who highlighted the inefficiency of focusing solely on LLM startups without tangible applications. Li called for a greater emphasis on developing AI-native applications based on these models to drive economic growth.
The sentiment of these prominent investors reflects a growing weariness among Chinese investors towards AI startups that prioritize LLM development over practical uses. The call for a shift towards applications and commercialization signifies a necessary evolution in the AI industry to ensure sustainable growth and innovation.
